In the 15 years since Japan’s economic bubble burst Japan has been through a succession of economic problems. Now Japan’s economy is suffering from a light recession, in addition to going through a period of mild deflation.

Despite these woes however, it appears things are beginning to look up. On the back of private consumption underpinned by strong corporate gains, falling unemployment and steady wage increases, the economic outlook is promising.

Economic Outlook Bright

According to the France-based Organization for Economic Cooperation and Development (OECD), Japan’s economy will grow at a rate of between 1.5 percent and 2 percent in fiscal year 2006, which will help to bring an end to the nation’s deflationary phase.

Additionally, the OECD expects unemployment rates to keep falling, after having already fallen 2005. By the end of 2006, the OECD predicts that unemployment would have fallen to 4.0 percent, down from 5.1 percent in 2003.

4 Growth Sectors

Four sectors in particular appear to be set to boom in Japan, helping to push the economic recovery, according to the Japan External Trade Organization.

Information and Communication Technology

Japan’s most impressive growth sector, the Information and Communication Technology (ICT) industry, is expected to become an 84 trillion yen market by 2010, according to the Ministry of Public Management, Home Affairs, Posts and Telecommunications.

Medical Sector

Japanese society is aging faster than any other nation. In fact, five times faster than France and three times faster than the U.S. This will mean an increasing need for medical, health care and welfare services.

Environmental Business

Conservative estimates suggest the environment industry will grow from a 24.7 trillion yen in 1997 to a 40 trillion yen market in 2010.